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Level 5
April 8, 2022
Question

Where to enter credit on CA return for tax paid to another state

  • April 8, 2022
  • 5 replies
  • 32 views

CA resident sold 2nd home in AZ, Recorded the capital gain on 8949. Then calculated AZ tax just for that gain. Now on CA return. Where do I enter credit for tax paid to another state?

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5 replies

csanchezAuthor
Level 5
April 8, 2022

I just discovered a check box on CA Capital Gains/Losses that excluded the transaction from CA Sch D. I would think that resolves the issue, right?

sjrcpa
Level 15
April 9, 2022

No. Don't do that. CA taxes everything a resident earns.

The more I know the more I don’t know.
csanchezAuthor
Level 5
April 9, 2022

So let CA calculate the tax and take the credit on AZ?

Just-Lisa-Now-
Intuit Community Champion
April 8, 2022

AZ is a reverse credit state, so the non resident state will give credit for taxes paid to the resident state.  Look on the AZ return for credit for taxes paid to CA.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
csanchezAuthor
Level 5
April 8, 2022

I did see that. Thank you.